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15 important things you should know about American Funds RCBBX mutual fund

Updated: September 19, 2020
40
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
Bear Case
  • Low net assets
  • High expense ratio
  • Sales load and/or distribution fees

Before we start: if you’re looking for RCBBX “stock” price, you can quickly find it out by visiting Finny and typing "RCBBX quote". If you’re looking for a quick scoop on RCBBX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "RCBBX". You’ll get all this info in one place.

Are you looking to buy or sell RCBBX? Or perhaps you’re looking for RCBBX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this RCBBX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: RCBBX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: RCBBX buy or sell; the pros and cons of investing in RCBBX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to RCBBX.

And here is the list of questions we’ll answer:

  1. Describe American Funds Corporate Bond Fund; Class R-2 Shares (RCBBX).
  2. What are RCBBX holdings?
  3. What is RCBBX performance? What are RCBBX historical returns?
  4. How many up and down years did RCBBX have historically?
  5. What is RCBBX dividend yield?
  6. What is RCBBX minimum initial investment amount?
  7. What is RCBBX expense ratio?
  8. Does RCBBX have any sales loads or 12b-1 distribution expenses?
  9. What is RCBBX tax efficiency (tax-cost ratio)?
  10. What is RCBBX beta? How would you assess RCBBX risk?
  11. What is RCBBX Sharpe ratio?
  12. What is RCBBX Finny Score? RCBBX buy or sell?
  13. What are the pros of investing in RCBBX? What are RCBBX buy reasons?
  14. What are the cons of investing in RCBBX? What are RCBBX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Funds Corporate Bond Fund; Class R-2 Shares (RCBBX).

The Fund seeks to provide maximum total return consistent with capital preservation and prudent risk management. The Fund would invest at least 80% of its assets in corporate debt securities. The Fund will also normally invest all of its assets in debt securities with quality ratings of Baa3 or better or BBB- or better.

2. What are RCBBX top holdings?

RCBBX has 0 stock holdings and 574 bond holdings.

The top 10 holdings represent 11.65% of total assets. Here are the top holdings:

Name Symbol % Assets
United States Treasury Bonds 2.38% N/A 2.79%
Bank of America Corporation 2.5% N/A 1.31%
Goldman Sachs Group, Inc. 3.8% N/A 1.26%
United States Treasury Notes 1.5% N/A 1.10%
Takeda Pharmaceutical Company Limited 4.4% N/A 1.07%
Credit Suisse Group AG 4.19% N/A 0.98%
Becton, Dickinson and Company 3.7% N/A 0.90%
Broadcom Corp 4.75% N/A 0.75%
Wells Fargo & Company 5.01% N/A 0.75%
Edison International 4.12% N/A 0.74%

3. What is RCBBX performance? What are RCBBX historical returns?

RCBBX has generated the following returns:

  • 1-month return is -1.74%;
  • 3-month return is 3.03%;
  • 1-year return is 10.24%;
  • 3-year return is 6.61%;
  • 5-year return is 6.18%.

4. How many up and down years did RCBBX have historically?

In the last 10 years, RCBBX had 8 up years and 2 down years. See Performances

5. What is RCBBX dividend yield?

RCBBX yield is 1.81%.

6. What is RCBBX minimum initial investment amount?

RCBBX minimum initial investment amount is N/A.

7. What is RCBBX expense ratio?

RCBBX expense ratio is 1.55%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses. See Expenses

8. Does RCBBX have any sales loads or 12b-1 distribution expenses?

RCBBX 12b-1 distribution fee is 0.75. RCBBX front-end sales load is 0. RCBBX back-end sales load is 0.

9. What is RCBBX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.01%;
  • 3-year ax cost ratio is 0.88%.

See Taxes

10. What is RCBBX beta? How would you assess RCBBX risk?

  • 3-year beta is 1.38;
  • 5-year beta is 1.33.

See Risks

11. What is RCBBX Sharpe ratio?

  • 3-year Sharpe ratio is 0.89;
  • 5-year Sharpe ratio is 0.98.

See Risks

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 40. Our quantitative analysis shows 2 reasons to buy and 3 reasons to sell it, resulting in the Finny Score of 40.

13. What are the pros of investing in RCBBX? What are RCBBX buy reasons?

The following are RCBBX strengths from our perspective:

  • <strong>RCBBX 3-year return</strong> is 6.61%, which is higher than the 3-year return of the benchmark index (Bloomberg Barclays US Corporate Bond TR USD), 6.51%.
  • <strong>RCBBX 5-year return</strong> is 6.18%, which is higher than the 5-year return of the benchmark index (Bloomberg Barclays US Corporate Bond TR USD), 6.06%.

14. What are the cons of investing in RCBBX? What are RCBBX negatives?

The following are RCBBX weaknesses from our perspective:

  • <strong>RCBBX net assets</strong> are $5.90 million. This fund is not a popular choice with retail investors.
  • <strong>RCBBX expense ratio</strong> is 1.55%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 sales fee. The maximum 12b1 fee is 0.75%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund.
In the RCBBX review, we covered RCBBX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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